What's the value of a view?

A view typically encompasses what can be seen, heard, and smelled from the property. Its value is subjective, with some individuals placing more importance on it than others.

As an appraiser, I aim to estimate how market participants perceive a view.

To gauge the value of a view, we can examine new construction housing developments. Developers often assign a premium to lots with desirable views. For example, a golf course community originally offered a $50,000 premium for homes overlooking the golf course compared to those without that view. However, the resale market may accept, reject, or assign a different premium for such views. It's crucial to remember that this value guideline may not apply universally to all golf course neighborhoods.

The value of a view can change over time. While some may perceive a golf course view as idyllic, with no rear neighbors and beautiful scenery, others might view it as a constant source of golf balls landing in their yard, posing safety concerns. Factors like the home's location on the golf course can influence the impact of the view. Ultimately, the appreciation of a view lies in the eye of the beholder.

Within the real estate appraisal field, views are referred to as external influences. These are factors that affect a property but are not part of the property itself. If these influences negatively impact the property's value, we call it external obsolescence.

Assigning a monetary value to a view is challenging. Ideally, we would find matched pairs of identical properties, with one having a view influence (positive or negative) and the other having a neutral view. However, this is rare in reality.

Timing and the laws of supply and demand can influence the value of a view. If many homes offer the same view, its impact may be diminished. Conversely, a unique and scarce view might command a higher value.

Ultimately, the value of a view is subjective and depends on an individual's perception and preferences.